MGHerring ready to tackle new retail projects

With the planned construction nearing completion at the Village at Allen and the Village at Fairview, The MGHerring Group is ready to take on new projects.

Earlier this week, the Denton City Council approved an economic development grant that would allow MGHerring Group and Dallas-based Cencor Realty Services to redevelop Golden Triangle Mall at Loop 288 and I-35E.

The plan requires an initial investment of $9.5 million in renovations and new construction before the city will kick in incentives.

City officials determined that the average 2010 monthly sales tax income of the mall in was $95,898. After the initial investment, any income above $95,898 will be split between the city and the owners. The incentive would be capped at $9.5 million or 20 years.

The purchase and redevelopment of the mall is estimated at a $60 million investment. MGHerring and Cencor formed joint venture GTM Development Ltd. to purchase Golden Triangle.

Cencor Realty Services, an affiliate of the Weitzman Group, manages the 31-year-old mall, which was foreclosed on in July 2010. The mall is owned by En Pertignus Holdings Corp., a division of JP Morgan Chase.

Weitzman and MGHerring have been in talks with the City of Denton since May, discussing the redevelopment of the mall.

“It’s not a tear-down, but it is making the project brand new for the Denton customer,” said Gar Herring, president of Dallas-based MGHerring. “You can’t just put a coat of paint on it and a new sign and call it new. It’s investing significant dollars to truly reinvent the project and make it a new experience for the customers.”

Renovations will include new entrances, a new food court, skylights, furniture, fixtures, flooring, lighting, kiosks and upgrading the tenant base, Herring said. A re-grand opening of the mall is expected for fall 2012, Herring said.

“It can’t be just a place to shop for what you need, it has to be a place you want to go and spend your leisure time,” Herring said.

Mayor Mark Burroughs agreed, saying in a statement that the mall “will offer Denton residents a greater variety of retail and dining options, as well as a place to spend their leisure time.”

Getting existing tenants to upgrade their stores, like Victoria’s Secret is currently doing, would also be a priority, he said.

“The city recognizes that this is the biggest component of the city, and they want to see the mall succeed and be redeveloped into something they can be proud of,” Herring said.

MGHerring is also scouting for other projects in the DFW area, Herring said.

When asked if he was going to get in on the possible redevelopment of Valley View Center and the proposed 400-acre area along I-635 between Preston Road and North Dallas Tollway, Herring had this to say: “I would love to work on Valley View Mall, but it would take 10 years of my life and a billion dollars. That makes it challenging.” He added, “I think it’s the best piece of real estate on 635.”

The company is also looking at projects in Terrell and in Augusta, Ga., Herring said, but he declined to give more details.